THE ROCKWOOL GROUP LIFTS OPERATIONAL RESULTS

25 February 2016

The ROCKWOOL Group starts to reap benefits from the Business Transformation Programme just a few months after launch. The operating cash flow increased 45% and the operating result 6% in the newly published 2015 annual accounts

The ROCKWOOL Group came out of 2015 stronger and leaner. Despite much turmoil in the world economy, the company increased turnover to EUR 2,208 million and improved operations considerably thanks to cost efficiencies. It marks the first milestone of the Group's Business Transformation journey which will turn the ROCKWOOL Group into a more efficient and agile company.

"We have had a good start for the transformation programme and a good end to the year" says CEO Jens Birgersson and continues: "The ROCKWOOL Group has an unlocked potential to improve profitability and secure continued expansion. Our strong portfolio of stone wool products responds well to our customers´ needs and plays a leading role in the transition towards sustainable and firesafe solutions in the building sector."

North America leads the growth

The year was not without challenges due to troubled economies in markets such as Russia and China. Despite these headwinds, the ROCKWOOL Group grew by 1%. This was a result of a strong performance in the Systems business, today one quarter of Group sales, as well as continued growth in North America.

"Our North American business continues to expand with double-digit sales growth and improved operational performance," says CEO Jens Birgersson. "The first US stone wool plant, inaugurated in 2014, has provided the necessary platform for further growth for our insulation products. Also the ROCKFON acoustic ceilings continue to advance and this has led to the decision to build a plant to meet the increasing demand for high-quality acoustic ceilings in the US."

Continued improvement in 2016

Looking into 2016, the ROCKWOOL Group is forecasting continued improved profitability bringing the operational result above 8.5% of sales.

"We expect to see slight growth in sales in 2016 despite the current turbulence in many parts of the world economy. We are confident that our Business Transformation Programme will bring benefits in terms of better performance and improved operational results as we continue our journey to make the ROCKWOOL Group an even stronger company," Jens Birgersson ends.

About the ROCKWOOL Group

At the ROCKWOOL Group, we are committed to enriching the lives of everyone who experiences our product solutions. Our expertise is perfectly suited to tackle many of today’s biggest sustainability and development challenges, from energy consumption and noise pollution to fire resilience, water scarcity and flooding. Our product range reflects the diversity of the world’s needs, while supporting our stakeholders in reducing their own carbon footprint.

Stone wool is a versatile material and forms the basis of all our businesses. With approx. 10,500 passionate colleagues in 38 countries, we are the world leader in stone wool solutions, from building insulation to acoustic ceilings, external cladding systems to horticultural solutions, engineered fibres for industrial use to insulation for the process industry and marine & offshore.